Financial Accounting for Local and State School Systems: 2009 Edition
NCES 2009-325
June 2009

Chapter 3: Budgeting — Budgets for Multiyear Construction Projects

The development of budgets for multiyear construction projects has two major stages. The first stage involves extensive planning to identify facilities'S needs. This may be accomplished through the process, outlined earlier in this chapter, on financial forecasting and planning. A committee may be created specifically for capital planning or as part of a strategic planning effort. Identification of capital needs may also come from maintenance staff or from a contracted evaluation. Evaluations should identify the costs for a particular program. From these inputs, need and cost, an agency can determine whether to pursue a construction project. Once this decision is made, the second stage of budget development for project financing can begin. This process does not necessarily need to be incorporated into the annual budget process.